Capitec Bank Slides as Profit Growth Slows: Johannesburg Mover

The company fell 4 percent to 215 rand at the close in
Johannesburg, bringing its two-day decline to 6 percent, the
biggest two-day slide since Nov. 1.

Earnings per share rose 25 percent to 35 percent in the
first half, compared with 53 percent in the year-earlier period,
the company said yesterday. The lender, which specializes in
unsecured loans for low-income earners in South Africa, said an
increase in client numbers and the size of its loan book boosted
earnings 68 percent in the 12 months through February.

“To expect continued growth of more than 50 percent at a
time when there is so much competition in this market is too
much,” David Shapiro, a director at Johannesburg-based Sasfin
Securities, said by phone. “Investors have been building in a
bit too much good news and I think it’s healthier that the share
adjusts back to more realistic levels.”

Capitec shares advanced 21 percent this year and trade at
19.11 times earnings. That compares to the six-member FTSE/JSE
Africa Banks Index (JBNKS), which trades at 12.8 times.